EARNINGS PER SHARE

Basic earnings (losses) per share (EPS) is based only on the weighted average number of common shares outstanding, excluding any dilutive effects of unvested restricted stock awards or other dilutive securities. Diluted EPS is based on (i) the weighted average number of common and potentially dilutive common shares (unvested restricted stock awards outstanding during the year), pursuant to the Treasury Stock method, and (ii) the potential conversion of the Convertible Notes, pursuant to the If-converted method.

The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the years ended December 31:


	2025		2024		2023
(Millions, except per share amounts)
Numerator
Income from continuing operations	$	521	$	279	$	737
Loss from discontinued operations, net of income taxes (1)	(3)		(2)		(19)
Net income available to common stockholders	$	518	$	277	$	718

Denominator
Weighted average common stock outstanding – basic	46.8		49.6		49.8
Weighted average effect of dilutive securities
Add: net effect of dilutive unvested restricted stock awards (2)	0.8		0.7		0.2
Add: dilutive effect of Convertible Notes (3)(4)	—		0.1		—
Weighted average common stock outstanding – diluted	47.6		50.4		50.0

Basic EPS
Income from continuing operations	$	11.15	$	5.63	$	14.79
Loss from discontinued operations	$	(0.08)	$	(0.05)	$	(0.40)
Net income per share	$	11.07	$	5.58	$	14.39

Diluted EPS
Income from continuing operations	$	10.96	$	5.54	$	14.74
Loss from discontinued operations	$	(0.07)	$	(0.05)	$	(0.40)
Net income per share	$	10.89	$	5.49	$	14.34

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(1)Includes amounts that related to the previously disclosed discontinued operations associated with the spinoff of our former LoyaltyOne segment in 2021 and the sale of our former Epsilon segment in 2019. For additional information refer to Note 1, “Description of Business, Basis of Presentation and Significant Accounting Policies” to the audited Consolidated Financial Statements.

(2)As the effect would have been anti-dilutive, for the years ended December 31, 2025, 2024 and 2023, approximately 0.4 million, 0.6 million, and 1.2 million, respectively, restricted stock awards were excluded from each calculation of weighted average dilutive common shares.

(3)The conversion feature of the Convertible Notes had a dilutive impact on EPS when the average market price of our common stock for the period exceeded the conversion price of $38.43 per share, and has been reflected in the table above. As of December 31, 2025, all of the Convertible Notes have been extinguished and no Convertible Notes remain outstanding.

(4)In connection with the issuance of the Convertible Notes, we entered into privately negotiated Capped Calls with certain financial institution counterparties. Diluted weighted average common stock does not include the impact of the Capped Calls we entered into concurrently with the issuance of the Convertible Notes, as the effect would have been anti-dilutive.

Historical Timeline

Fiscal Year	Filed
2025	Feb 13, 2026	Showing above
2020	Feb 26, 2021

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

BREAD FINANCIAL HOLDINGS, INC. Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

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